Lego A/S is putting its money on China’s expanding middle class, the world’s biggest, shrugging off short-term economic woes in the Asian nation.
The world’s largest toymaker will invest in China, adding new stores and production capabilities, because it sees the growing demographic helping the Asian country become a long-term growth market, according to Chief Executive Officer Niels B. Christiansen.
Even in the short term Lego can find Chinese growth as there are dozens of medium-sized cities where it hasn’t yet rolled out its well-known colorful building blocks, according to Christiansen. “It’s clear that the uncertainty around the Chinese property market is affecting consumers as they don’t go to the stores and spend as much money as they normally would have,” the CEO said. “We don’t know how long that will last but we will sit it out.”
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